The Palermo Technical Impact Hazard Scale was developed to enable NASA near-earth object specialists to categorize and prioritize potential impact risks spanning a wide range of impact dates, energies and probabilities. Actual scale values less than -2 reflect events for which there are no likely consequences, while Palermo Scale values between -2 and 0 indicate situations that merit careful monitoring. Potential impacts with positive Palermo Scale values will generally indicate situations that merit some level of concern.

The scale compares the likelihood of the detected potential impact with the average risk posed by objects of the same size or larger over the years until the date of the potential impact. This average risk from random impacts is known as the background risk. For convenience the scale is logarithmic, so, for examples, a Palermo Scale value of -2 indicates that the detected potential impact event is only 1% as likely as a random background event occurring in the intervening years, a value of zero indicates that the single event is just as threatening as the background hazard, and a value of +2 indicates an event that is 100 times more likely than a background impact by an object at least as large before the date of the potential impact in question.